Nagananda Kodituwakku
Alleged 1.5 billion revenue fraud condoned by the new DGC: An Insight into the case
Relying on information provided by the Customs Central Investigation Bureau (CIB), Sri Lanka’s print media reported last week, that a large number of Toyota Prado Jeeps (over 189 numbers) had been detained at the Hambantota port by the Customs Central Investigation Directorate and that the respective importers had failed to declare the ‘TRUE TRANSACTION VALUE’ for Customs purposes. It was further reported that the Director General of Customs (DGC), Mr Chulananda Perera, has made an illegal order to release all these vehicles causing a colossal loss of over 1.5 billion rupees of revenue.
The objective of this piece of writing is to alert the readers with the factual information about this case, as it appears that people are being misinformed with falsified stories by the interested parties both in and out of the Customs service.
Agreement on implementation of Article vii of the GATT – 1994
Sri Lanka is a member of GATT (General Agreement on Tariffs and Trade) and member of the WTO since 1st Jan 1995 and has ratified the Article VII of the GATT concerning valuation of goods for Customs purposes.
Enacting laws in keeping with the GATT Valuation Agreement
The Article 12 of the said agreement requires all member nations to make laws and regulations setting out the content of the agreement. And in 1988, Sri Lanka adopted the said agreement in the Customs Ordinance (Schedule E).
The primary basis for Customs value under these regulations is the “transaction value” as defined in Article 1 of the said regulations, that is the price actually paid or payable for goods when sold for export to country of importation.
Strict penal sanctions against violations
The law also empowered the Director General of Customs (DGC) to take stern action against wrongdoers who defy the law for the purpose of evasion of the government revenue. This punitive power also includes the forfeiture of the goods and to impose treble the value of the goods (Section 52) as penalties/forfeitures.
Reservations under GATT Valuation Agreement
However, ‘in the interest of national economy’ the government of Sri Lanka has reserved its rights to maintain minimum value for any goods, as the government deems appropriate. However, the Article 10 of the Valuation regulations requires any such minimum value as determined by the DGC for any goods shall be published in the Gazette, which shall then be adopted to charge levies on such goods.
Reservation of right to determine minimum value for motor Vehicles
Then in Nov 2013, with the Gazette notification (1837/27 of 21st Nov 2013) issued by the Minister of Finance, motor vehicles were taken out of the application of Article VII of the GATT, with a minimum value determined by the DGC for motor vehicles. These values apparently ‘obtained from the manufactures of the motor vehicles, compelling the importers of motor vehicles to pay all levies on the basis of the minimum value so determined by the DGC and not on the transaction value (whether it was higher or lower of the minimum value) which has no impact at all on recover of levies on motor vehicles.
Serious flaws in the values determined by the Customs Valuation Committee
Subsequently serious flaws were discovered on the minimum values so determined by the Customs Valuation Committee resulting the removal of the Chairman of the Valuation Sub Committee. Then the DGC was compelled to obtain actual values from the vehicle manufactures, resulting in a substantial increase of the minimum value with no change whatsoever of the values of motor vehicles as determined by the manufacturers. As a result of this inevitable change, there were two different minimum values determined by the DGC for the same vehicle.
Enforcement Divisions’ attempt to find fault with the vehicle importers
When this discovery was made by the DGC, hundreds of vehicle had already been landed in the port of Hambantota. On these vehicles importers had paid levies on the minimum value originally determined by the DGC, which was changed only after these vehicles had been shipped on board. However, officers of the CIB, alleged that there was a fraud committed on the part of the importers, who had already complied with the minimum value criteria established for motor vehicles by the DGC and paid levies. One officer of the Customs CIB Directorate detained hundreds of Toyota Prado jeeps unloaded at the Hambantota port, alleging that the value declared for the Customs purposes was false and hence all vehicles are liable to be forfeited under the law (Section 52), in addition to pay a substantial penalty for ‘violation of law’.
This action clearly offended the law (minimum value regime) governing valuation of motor vehicles, as the new law permits no penal sanction once the importer pays levies on the minimum value so determined by the DGC, where whatever the transaction value declared would not affect the levy recovery process.
This point of law had been already clarified by the new chairman appointed to the Valuation Sub Committee, which revised the old bogus values determined by the same Committee headed by a different individual who was later removed.
The precisely clear decision on the point of law of the Valuation Sub Committee on the issue is reproduced below.
‘…Once value for motor vehicles are determined by the DGC, it shall be the Customs value for recovery of taxes (on motor vehicles) and when complied with (by the importers) no penal sanction as provided by the Customs Ordinance can be invoked (against the importers)…’
In this backdrop, a written submission (26th Oct 2015) was made by me to the Attorney General to ensure proper compliance with law relating to valuation of motor vehicles by the officers of Customs, without harassing the trade with arbitrary actions driven by reward oriented motivation by some officers, which has already been condemned and outlawed by the Supreme Court (Toyota Lanka v DGC SC Appeal 49/2008).
In the mean whilst, the vehicle importers association too made several representation to the Minister and the DGC, urging strict compliance with law, leaving no room for arbitrary actions initiated by certain officers for improper purposes.
Bold decision taken in keeping with the law while defying illegal demands
Finally, on 15th Dec 2015, strictly following the law governing valuation of motor vehicles for Customs purposes, and defying ‘popular demand by the officers’ for imposition of penalties on the importers, who had nothing to do with the absolutely flawed values determined by the Customs Valuation Sub Committee, the DGC, Mr Chulananda Perera, took a bold decision with an order made to release of all the vehicles seized by the CIB Directorate (held in Hambanotoda port for over 2 months) on which levies had been already paid on the minimum value so determined by Customs.
Understandably the decision of the DGC has effectively denied Custom Officers an opportunity to recover penalties from importers and to claim cash rewards (1/3 from proceeds recovered as penalties).
However, it is unfortunate that the officers of Customs tried to mislead the people that the DGC, Mr Chulananda Perera, was responsible for causing a substantial revenue loss of over 1.5 billion rupees to the government simply to please the Minister.
Dr,Rajasingham Narendran / December 24, 2015
Thanks for the clarification, at a time when it is becoming very difficult to separate fact from fiction and bad from good intentions. In the confusion that is being created, truth will be buried and the guilty will dodge punishment, while the names of the good , honest and the decent will be sullied.
Dr.Rajasingham Narendran
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anonymous / December 24, 2015
Thanks Nagi. Wish Silly Lanka had more heads like you in the right places. Happy New Year to you and the family!
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Don Stanley / December 25, 2015
Keep up your great work and courage Mr. Nagananada Kodituwakku!
You are a fearless educator and a great asset to Lanka.
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basil / December 26, 2015
Moron you don’t even know bio chemical dietetics.- you are what you eat!!
The day I was leaving campus I went up to my HoD for a bit of advice.
He became primary selector of foreign servants GoI.
We did not have politically motivated strikes like SL but discussion)
He said there can never be another Gandhi.
This is very true- they are all one trick pony even in sports.
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shankar / December 24, 2015
all’s well that ends well and we all can get back to eating our buriyani.
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Naveen Udawella / December 24, 2015
The question remains however as to who motivated the previously designated erroneous valuations to be submitted. It is clear that it is the importers who are profiting from such malpractice. And it is logical to think that no customs officer would do such a thing without some ones inactivation .
So while acknowledging that this issue prima facie seems like fair and strict implementation of law, on simple analysis looks like someone manipulating the law for financial gains.
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Botheju / December 24, 2015
The truth here is that no respectable importer can survive in the import trade in this country, paying tax on the Transaction Value system.
All importers do under value their goods to pay lesser duty. And if one importer declare the true transaction value for his goods, he is bound to fail and would go out of business, as he cannot compete in the trade with others who pay lesser tax on lower value declared for the same goods.
The government depends heavily on the tax collected on Motor vehicles. Therefore vehicles were taken out of the transaction value system and minimum value system was introduced to stop tax evasion incurred from the false transaction value declared by the importers.
Yet, that too has become a monumental failure, as the Committee appointed by the DGC to formulate a minimum value base for vehicles for customs purposes, (according the make and model of vehicles) set up a FALSE value base. The local agents of vehicle manufactures were involved in this racket with the Customs men, forcing the Finance Ministry to intervene in the formulation of the minimum value base for vehicles based on the values obtained direct from the manufactures of vehicles.
This is the undeniable truth behind this whole episode. There is no point trying to find fault with importers.
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timpu / December 24, 2015
“”This is the undeniable truth behind this whole episode. There is no point trying to find fault with importers. “”
smart alec!!
There is nothing undeniable!! the importers always find a way out or there would not be importers when there is a demand.
have you heard of where there is a will there is a way out??
Because of noose on corruption at China many government servants have started to migrate to the vicinity ie Australia.
It was standard that 90% of the VVIP residency was being taken by the Chinese and the Australian government was not seeing any growth.
Australia stopped the issue of this VVIP residency then rewrote the conditions to limit Chinese takeover and offer others a chance.- last July they opened the doors and once again its 90% Chinese. The Australian agents for Chinese confirmed we will be back no matter what. that is human nature.
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carlos / December 25, 2015
This is an old story, importers and the Customs Mafia work hand in hand. One to protect his market and keep competition out of the race and two to line the pockets of the custom officers, Here is where the law of declaring all assets of custom officers and keeping a track of paying bonuses of 1/3 of the fines imposed on those importers caught cheating or smuggling, so that the income of each custom officer can be gauged, BTWdo they declare this in their tax returns??.
One can sayits OK to a point if the consumer profits from the cheap custom tarifs imposed by the bribe takers, but thats not the case, they sell the goods at normak market prices or perhaps a little bit cheape than the honest importer.
BRING A CIVIL SERVANT AS DG OF CUSTOMS. Instead of someone who hascome up the ranks and is well boiled in corruption. BTW same goes for the Police Force fromIGP to even DIGs.
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tokka / December 25, 2015
“BRING A CIVIL SERVANT AS DG OF CUSTOMS. Instead of someone who hascome up the ranks and is well boiled in corruption. BTW same goes for the Police Force fromIGP to even DIGs. “
Civil servants can be even worse and deceitful- they steal some of they best scholarships- ask Paskaralingam or any other how their kids go abroad to the best universities with that small salary- that just the tip of ice-berg.
Playing the hide and squeak game is no easy task.
How UK handles this is: All duties paid are `bona -fide` (latin) estimates and the customs can revert back anytime then and charge more or refund. Very rarely it happens but that is how it works.
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Hilmy Ahamed / December 24, 2015
These damn rewards for public servants is what drives all these officers to be super efficient when their “take” is insufficient. We see this happening on a daily basis at all entry Custom points to Sri Lanka, and also our wonderful policemen hiding behind barrels or trees to catch the driver crossing the white line or holding “speed guns” from hidden places. The primary responsibility of police is to prevent the breach of the law, but we see exactly the opposite. They too would gladly give you an “on the spot” fine or threaten to take you to courts if your offer is not good enough. Why are they super efficient when they would work under trying conditions – All BECAUSE OF THE REWARDS FROM PENALTIES IMPOSED. Why does the government pay only these holy cows a reward for the duty they perform and are paid for.
Are there any lawyers in this forum who could challenge this reward scheme as a breach of our fundamental right?
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Smith / December 24, 2015
“”Are there any lawyers in this forum””
This is not a forum- a forum is physical presence of people.
you are on the net and its a `newsgroup`
there are many arrogant bigots and their minds are fixed.(like any other free internet newsroom.
There are a couple of great creative writers who add charm to a conversation.
There are a couple of lawyers but they will not advice for free because its their bread and butter.
My first import was at the young age of 8- dinky toys from USA.
To riding a collectors item car with a garage number plate. These are big stories that i would never discuss even though i don`t live there anymore.
All i can say beware of baldies because they lead the show- its a fact and i can never stop laughing thinking of them.
They have to sit exams to get that job like civil service/foreign service.
The reward is in order as nothing comes for free.- bankers get perks.
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Gunawardana / December 24, 2015
It ish difficult to contain established Customs Mafia, they will let the DGC Chulananda learn a good lesson and they are surely capable of get rid of him.
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Nandana / December 24, 2015
DGC, Mr Chulananda, Clean the Customs from rouges. You are the right man to do it.
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Amare / December 24, 2015
Claiming of cash rewards is a right afforded by law to encourage us to protect the revenue sans frauds and no one has a right to question about it.
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Fathima Fukushima / December 24, 2015
Sri Lanka has no future.
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Rohan / December 24, 2015
When three Customs Officers were nabbed with cash of 125 million rupees by Bribery Commission recently, people thought how on earth such a big bribe can be solicited.
This is quite normal at Customs today. The Valuation Committee that approved false value to ‘facilitate local agents of all makes of vehicle’ would have been paid some thing much higher than 125 million. If not for the wrongful actions of the Valuation Committee members, there is no reason for the DGC to obtain true values from the manufactures and enhance the minimum customs value.
It is true that importers who were benefited by this abuse should not be held responsible to pay higher tax for the wrongful actions of Customs Officers. Yet the Customs chief should not let the crooks in the Customs, responsible for approving lower values escape unpunished.
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prabath / December 24, 2015
I can’t understand how the Customs can find fault with importers of motorcars, who had paid tax on the values determined by the DGC.
If the Customs value is false then not the importers but those who had decided such false values should be dealt with.
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Crazyoldmansl / December 24, 2015
“Then the DGC was compelled to obtain actual values from the vehicle manufactures, resulting in a substantial increase of the minimum value with no change whatsoever of the values of motor vehicles as determined by the manufacturers.”
Please explain what this means.
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sekar / December 24, 2015
I believe that, after this fraud was exposed and realised that the minimum values for Customs purposes determined by the Customs Valuation Committee were in fact false, the Customs Chief was forced to obtain the actual values from the Manufactures of different makes of vehicles and to increase the minimum value substantially.
It is correct to say that all importers who imported vehicles after the said change was made are liable to pay taxes on the new minimum values as determined by the DGC.
But those who had already opened LC’s before the said change was made and paid tax on the ‘false customs minimum value’ cannot be held liable for the fraudulent actions of the Customs Valuation Committee.
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Smith / December 24, 2015
Nagananda Kodituwakku,
“which was changed only after these vehicles had been shipped on board.”
customs duty at SL and worldwide is charged `at sight` (here hambantota)
never when it leaves destination port.
So the customs officers were right in their assessment.
I import to the UK regularly and DHL clears my goods and pays all taxes on my behalf.
I pay DHL online the same moment they pay so that the gun is cleared and I receive my goods by mid day.
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nagananda / December 24, 2015
There is no issue on recovery tax which shall be paid at the rates applicable at the time of presenting a Bill of Entry for the Customs purposes.
Real issue here is demanding of a penalty payment in addition to payment of tax on revise values, a sum equivalent to the additional levy chargeable on the enhanced value.
What the DGC has done here was make an order to release of the vehicles on recovery tax on the enhanced value with no penalty recoveries. This action is perfectly within the law. No one can find fault with this decision except the officers who had been denied with an opportunity to claim a cash reward.
The law does not permits imposition of any such penalty, particularly in cases where tax is paid on the minimum value as determined by the DGC and not on the transaction value if proved false severe penalties and forfeitures can be imposed.
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Smith / December 24, 2015
“”Real issue here is demanding of a penalty payment in addition to payment of tax on revise values, a sum equivalent to the additional levy chargeable on the enhanced value.”
I know this story even at colombo harbour where I have imported items and employed wharf clerks to clear my goods.- then it was Brussels Tariff Nomenclature.(BTN numbers) Anyone who understood BTN numbers could become wealthy was the norm.
If we use a loophole in the system even in UK we are never at fault. Systems are made to be used to the best of our ability.
But in this case the importer has paid the `former lower amount` claiming that he had goods shipped as per invoice CIF. Now that is a case of cheating with the help of may be a higher up or the officer inspecting. He cannot claim ignorance of the law because he has admitted he knew the law. Therefore as you have stated the penalty for that mischief- remember we learn from our mistakes. They could have reduced the penalty and i feel they should have paid a token penalty for trying to ride the authority.
now they are going to make a killing on the sale of those vehicles.
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Sinhala_Man / December 25, 2015
Dear nagananda,
I take it that you are the author of the main article. As you, and Dr,Rajasingham Narendran, above, say, there are so many stories going round that we don’t know what to believe. But today, I have sat up and taken note of the good work that you are obviously doing fearlessly:
https://www.colombotelegraph.com/index.php/cj-raps-lawyer-challenging-national-lists-for-obstructing-justice/
Car permits for politicians must definitely go, as must this proposed payment of Rs 20,000/= for each day’s sitting in parliament:
http://www.dailynews.lk/?q=2015/12/24/editorial/sitting-allowance
Since that is from an actual government owned newspaper, we have to take the story as true. Is this the government that we worked so hard to install?
As for doctors! Isn’t it high time that we realised that they are a fraternity who exploit society worse than any other? Of course there are the exceptions, but even they can’t rat on the doings of their colleagues if they want order in their workplaces, but let me tell you what I learnt two years ago; it relates to these motor vehicle imports.
I was helping a wonderful doctor couple get through their IELTS exam a few years ago. A very unusual couple by today’s standards! They had decided many years earlier that they would not add any children to this already over-populated world. I make this “mistake” of giving away language-learning secrets, and so my average student comes to me only for four lessons, some only one. This couple came to me for all of two years, but with a long break in the middle while she focussed on her Australian Medical Council Exam which had to be done by both of them going to Singapore. The husband was content to work long hours in the O.P.D., but she was a specialist, who could have made tons of money through “channeling”. But they did no work outside the hospital, saying that life had to be enjoyed – which they did in simple ways (they were posted far from Colombo). I, too, am a villager!
Well, suddenly, they announced that they were selling both their cars, and getting the brand new car that they were entitled to. After it turned up, they told me how it had all worked out. All government doctors know that there is one particular doctor who is a “Car Specialist”. I never bothered to find out his name: that must be known to you, nagananda, and no doubt to the customs people.
This doctor has his contacts who purchase NEW cars in Japan, and run them for just four kilometers! They are then imported in to Sri Lanka, as either used or reconditioned cars. Apparently, when re-selling after five years, all buyers know when told that it was a new car that was imported, although the “book” says otherwise.
The couple are abroad now, but keep in touch. I haven’t bothered to find out what happened to the car; I guess a relative must be using it – finding a home for a car is no problem. But they did have problems finding a home for another of their acquisitions – a (mongrel) “doggie” whom they named Shane, and she was duly spayed. Shane used to sleep between them on their bed! I wonder if their doctor ordered that! To take Shane with them was not going to be easy; she would have to be kept in quarantine in Singapore for six months! Anyway, the couple were told by all relatives that if the dog had been brought up as a dog, they would have obliged, but Shane had been their “child” – so there was no way that Shane would be kept. Fortunately, their landlord in that rather remote town has obliged, and when they turned up nine months ago to get some no-pay leave extended (which proved difficult!), they spent their time with Shane, who travelled round the country quite a bit.
I don’t think that they ever spent all the money that this Rajapaksa spent on his dog:
http://srilankabrief.org/2015/07/rohitha-rajapaksa-his-caucasian-shepherd/
These are doctors who stated very clearly that they are NOT emigrating; they will return to the country, work in government hospitals and NEVER do any private practice.
I guess this is an unusual couple today – but that was the dedication which we expected from doctors, and doctors all base their claims for being “special people”, who deserve perks, on that basis.
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Asterix / December 26, 2015
be weary of men with no vices.
we all prefer a stupid servant for this very reason.
Remember Sri of BoC? He is not the first most are history that you do not know because you are from a village unlike city slicks.
Just before desert storm 1 saddam beheaded his best friend mayor of Baghdad because he took a small bribe.
You missed foundation Ivy Quakers. may be in a couple of generations you will join us to see the marks we score.
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Sinhala_Man / December 28, 2015
Dear Asterix,
Thanks for the caution; yes, we villagers are ignorant of many things, but that doesn’t mean that we are naiive.
Ignorance: “Sri” of BanK of Ceylon? – no I don’t know what such a fellow was up to.
Funny that you refer to “Ivy Quakers” – something to do with a housing estate in Sydney? Well there’s so much that I have said very recently about Quakers:
https://www.colombotelegraph.com/index.php/understanding-islamic-terrorism-iii/
And this good Muslim, Izeth Hussain, has decided to write much more about them. SERIOUSLY: read it all – I’m sure it’s going to be worth following: both his writing, and the irrelevant comments.
Most people associate Quaker with “Oats” – but the “Quaker Oats” Company was not in any way associated with the group of people generally referred to as Quakers. I’m sure that you’ll find this amusing, even entertaining:
http://orangecountyquakers.org/quakers/general/notso/sue_us.htm
It’s funny that only they link themselves (conveniently and falsely) to the Quakers, whereas the Quakers did found a number of companies: only “Clark Shoes” remains in Quaker hands, others were: Banks: Barclays, Lloyds, Gurneys; Chocolates: Cadburys, Rowntrees, Frys, and there was an insurance group.
As for the doctors who own “Shane”, I can assure you that, although even I have been bitten sometimes, there’s no need to be WARY of them! I promise to eat my hat!
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Asterix / December 26, 2015
E&O: weary> watchful pls.
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Eddie Wijesuriya / December 24, 2015
I am glad that the “AIR” has been cleared in this instance, but it is an established fact that certain Customs officials are despicably corrupt, which we have seen time and time again. Corruption is still rampant in most government establishments including, Inland Revenue, Police, Customs etc. Even a peon in government Department does not move without a “santhosam” greasing their palms. Recently in the Registry of Lands a file was missing until mysteriously appeared after the “santhosam was paid. This, now is a “Custom”
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kumaran / December 24, 2015
“In the interest of the national economy….” For whom were these luxury vehicles imported and are they people who cannot afford the full Duty in terms of GATT?! What are their incomes, for what purpose were they imported?? I can understand these provisions (to lessen the value below GATT) IF these articles were for Hospitals, Schools and Universities, or some really meaningful need!! BUT LUXURY VEHICLES???
Indeed we are a nations of idiots. Or so these idiots think!
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Inspector Dirty Hari / December 24, 2015
kumaran,
“For whom were these luxury vehicles imported and are they people who cannot afford the full Duty in terms of GATT?! What are their incomes, for what purpose were they imported??”
Thanks. I agree.
Who buys these kind of vehicles and from where does their money come from?
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Native Vedda / December 24, 2015
kumaran
“Indeed we are a nations of idiots. Or so these idiots think!”
How long did it take you to figure it out?
Congratulations.
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Nagananda / December 24, 2015
kumaran
I absolutely agree with your comment.
There is no reason whatsoever to take the vehicles out of the application of the GATT valuation regime (as done by the Govt of Sri Lanka in Nov 2013). The GATT Valuation system and the existing laws governing valuation of goods for Customs purposes is more than adequate to protect the government revenue with stringent penalties and forfeitures provided by law against the submission of FALSE values for customs purposes.
Govt of Sri Lanka heavily depends on revenue charge on motor vehicles and I believe the govt made a decision to do away from GATT valuation system for motor vehicles, because there are a lot of flaws in the administration of the GATT valuation system in Sri Lanka.
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Inspector Dirty Hari / December 24, 2015
Nagananda,
“The objective of this piece of writing is to alert the readers with the factual information about this case, as it appears that people are being misinformed with falsified stories by the interested parties both in and out of the Customs service.”
Are these the same vehicles that you wrote about in your earlier article?
If they are I wonder:
1) Why you earlier described permit vehicles as being duty free when you now apparently admit that these vehicles are not imported duty or tax free? Lower tax/duty with a permit is not the same as no tax/duty. You know it, I know it but many others don’t know it.
2) In your earlier article naughty doctors who had sold their permits were suspected of fraud or that is how I understood your article. Would you mind informing us are the doctors really suspected of this fraud or not? Is this kind of fraud not usually done by the importers?
“The Inside Story: Why Ravi K Released Toyota Prado Jeeps”
I don’t find the answer in your article. Why did he do it if he did it?
Please continue your work but try to make the details easier to understand.
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Nagananda / December 25, 2015
There appears to be confusion in the minds of some readers about the Toyota Prado Jeep case referred to in the article.
These vehicles have been imported on permits issued under the Customs Law (Section 19A) by the Treasury to professionals including doctors, in the ‘public interest’ exempting the imports made under the permits from the normal tariff. Originally imports under these permits were subject to a strict control. As the abuse of the scheme incurred a heavy revenue loss by the government, any form of disposal within a period of 5 years, made the vehicle liable to be confiscated.
However, later on all restrictions imposed on these permits were completely withdrawn later on, by the then Secretary to the Treasury P B Jayasundara, permitting the abuse of these permits for unjust enrichment.
I reported this abuse to the Corruption Commission, urging it to initiate action, but the Corruption Commission turned down the request on the basis that it would not investigate into the abuse of permits, as the government has expressly allowed this misuse although government had incurred a heavy loss. Therefore, I should say that my view on the transfer of permits remains stands. It is morally wrong although the government has endorsed the transfer or sale of such permits.
The current issue, discussed in the article is purely on a point of law, about the valuation of the vehicles imported on these permits by the vehicle dealers for those who had bought these permits or purchased by themselves.
Regulations made by the Minister, under Article 10 of the Schedule E of the Customs Ordinance (which introduced the transaction value regime under Article VII of the GATT valuation agreement), make it unlawful for the Customs to apply the transaction value regime, as the regulations so published under Article 10, provides that any levy, if any, shall be charged purely on the ‘minimum values as determined by the DGC’ (not on the transaction value).
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tokka / December 25, 2015
but even in the UK the goods are valued at site and taxed irrespective of transaction value. therefore an exporter from US cannot confirm the duty at UK.
What happens if the said vehicle is fitted with a Roll’s Royce and not the diesel engine??
where does the flat tax come in?? Its happening there.
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Inspector Dirty Hari / December 25, 2015
Nagananda,
Thank you for your reply.
I still don’t understand why you are making a claim that Ravi K released the Prados while this apparently was done by the DGC? In addition it looks like the DGC in this case was a fine example of good governance and rule of law.
Or have I totally misunderstood you?
I have to confess that while I value what you do I find your articles confusing.
“I reported this abuse to the Corruption Commission, urging it to initiate action, but the Corruption Commission turned down the request on the basis that it would not investigate into the abuse of permits, as the government has expressly allowed this misuse although government had incurred a heavy loss.”
If we look at the legal question only there is no crime or corruption because transferring the permits is now allowed.
Why did you accuse doctors and others selling their permits of fraud?
“Therefore, I should say that my view on the transfer of permits remains stands. It is morally wrong although the government has endorsed the transfer or sale of such permits.”
I agree.
“The current issue, discussed in the article is purely on a point of law, about the valuation of the vehicles imported on these permits by the vehicle dealers for those who had bought these permits or purchased by themselves.
Regulations made by the Minister, under Article 10 of the Schedule E of the Customs Ordinance (which introduced the transaction value regime under Article VII of the GATT valuation agreement), make it unlawful for the Customs to apply the transaction value regime, as the regulations so published under Article 10, provides that any levy, if any, shall be charged purely on the ‘minimum values as determined by the DGC’ (not on the transaction value).”
Since this was achieved is there a problem? Should we not thank the DGC for what he has done despite opposition from his staff?
What was the role of Ravi in this?
Who is going to buy the Prados and from where does their money come from?
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Praveen / December 25, 2015
As Customs house agents, we are the people who know the best about Customs Officers. We are the ones go between them and the importers. Everything collected behind the curtain is done through us. Yet these people treat us worse than slaves.
There is a strong competition to get a transfer to Valuation Division. Even the Ministers get involve in these transfers as the stake there is very big for a officer serve there for 3 years.
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Inspector Dirty Hari / December 26, 2015
Nagananda,
Do you know what it costs to import a brand new Defender with a permit for a MP? I am wondering how much money Hirunika needed for her vehicle.
Thank you and keep up the good work.
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didi / December 26, 2015
gamayta magic in the 4th world of pollution – defender
heard of the Invader- electric vehicle that travels at 60 mph??
what a gluttonous nation of beggars.
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sella / December 26, 2015
Not Ravi Karunanayake, a businessman with cooperate interests, but the DGC should get the credit for not allowing the rouge officers to charge penalties.
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